According to a study by Raiffeisenbank, according to the results of the 2nd quarter of 2020, property prices in Bulgaria increased by 5.3% in annual terms. The growth of the price level did not stop even despite the freezing of the market during the period of active spread of the coronavirus. At the same time, the growth rate of the cost per square meter was lower than a year earlier (7.5%).
According to Georgy Georgiev, Head of the Collateral Department at Raiffeisenbank, the positive dynamics is due to strong market growth in the first quarter of this year before the introduction of quarantine restrictions. In Sofia, housing prices increased by 5% compared to last year (1176 euros sq. M.), In Burgas (880 euros sq. M.) And Varna (852 euros sq. M.) - by 1.92% and 1, 88% respectively.
In Raiffeisenbank's research predicts an annual decline in Bulgarian GDP of 6%, which will undoubtedly have a negative impact on the Bulgarian real estate market. However, this influence will most likely be felt in late 2020 - early 2021. howundefined noted Mr. Georgiev, given the market prospects, sellers of residential property will have to be more flexible with respect to the sale price, and buyers will have to realistically assess their capabilities in relation to the burden of future obligations.
A source: Rbb.bg
